The Fort Monmouth Economic Revitalization Authority (FMERA) and CommVault have closed on a deal that will bring the software company from Oceanport to Tinton Falls property on Fort Monmouth.
Tinton Falls Mayor Michael Skudera said the deal was finalized on Tuesday afternoon and that the transfer of the property is complete.
"I signed off on the final paperwork last week, the county did the same," Skudera said in an email to Patch.
Skudera said CommVault is expected to start its initial site work in the next several weeks. He added that a ground-breaking ceremony will also take place in the "not too distant future."
The deal between FMERA and CommVault is the first sale of property at the fort.
The sale price of $5.9 million, down from a previously agreed price of $6.1 million. The reduction is reportedly due to increased costs CommVault took on in its due diligence process, bringing in engineers of various fields to inspect the property.
The Fort Monmouth Economic Revitalization Authority also approved a developers agreement with CommVault, the county and Tinton Falls that sees to the redevelopment of roads leading to and from the property. More on that here.
Tinton Falls recently passed a resolution to move forward with a Payment in Lieu of Taxes program with CommVault that will send more than $300,000 to the borough after the first phase of construction.
"Tinton Falls was able to help attract CommVault to Tinton Falls with its stable tax rate and the successfully negation of a PILOT agreement that took place between CommVault and Skudera’s administration," a release from the borough stated.
CommVault has said it will eventually add 2,000 employees at the new site in addition to its current 500 in its current headquarters in Oceanport. The company is bound by an agreement with FMERA to generate up to 225 of those jobs within three years of moving in. If it doesn't, it will face penalties of $3,000 per job not created.
Skudera called the deal "the first step towards restoring the thousands of jobs lost at Fort Monmouth."
"This will be a good boost to the local economy; hundreds of good-paying IT jobs will be created," Skudera said.
CommVault is expected to build about 650,000 square feet of new, high-tech office/research technology space in one or more buildings, according to the ordinance introduced by council. The project will be built in three phases with phase 1 consisting of about 277,194 square feet of office/research, laboratory and training facility space with parking and other infrastructure improvements.
Skudera said the completion of the first phase will create up to 400 new jobs while keeping another 500 employees in the Garden State.